< The 2016 All-Europe Research Team

Total Appearances: 33

Team Debut: 1992

Vaulting from runner-up, Bank of America Merrill Lynch captures its first top finish on this lineup since 2009. The firm’s European media group was then led by Julien Roch, who moved to this year’s No. 2 firm, Barclays, that September. Two months later Daniel Kerven signed on to direct coverage for BofA Merrill, armed with nearly 15 years’ experience tracking this sector for UBS, ABN Amro and Dresdner Kleinwort Benson. The 41-year-old analyst holds a bachelor’s degree in economics from England’s University of Exeter. Working from London, he and two colleagues “have done extensive work on the music sector, a growingly important topic in the media sector,” one fund manager observes. “Their coverage with deep-dive research pieces, direct access to sector specialists and music companies’ management teams offer an unparalleled perspective on the rapidly changing music industry.” Kerven and his team “expect the shift to streaming and subscriptions to improve the monetization of music from a low base, on fixed costs while improving the quality of earnings,” says Kerven. “The professional publishers have largely completed the transition from print to digital, and the growing importance of data creates new growth opportunities.” More broadly, the researchers monitor 22 companies and see selective opportunities among European broadcasters with a focus on improving macro momentum and forming new and diversified business models aimed at growth. Already, U.K.-based ITV and Germany’s ProSiebenSat.1 Media are “making good progress to becoming ‘second generation’ broadcasters and are among our key picks,” says Kerven. Italy’s Mediaset “is lower quality but has the greatest scope for earnings upgrades given compressed margins, improving macro momentum, improved pay-TV monetization and falling TV rights amortization costs.”